Dry Cleaners in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) November 18, 2013 -- Thanks to the recession, the past five years have left the Dry Cleaners industry out to dry. Over the five years to 2013, revenue fell at an average annual rate of 2.6%. The industry provides dry cleaning and laundry services (excluding coin operated) to consumers and commercial clients, such as hospitals, hotels and restaurants. According to IBISWorld Industry Analyst Kiera Outlaw, “With heightened unemployment limiting disposable income, consumers began using more inexpensive services to launder and dry-clean their clothes, such as household washers and dryers, home-use dry-cleaning kits and coin-operated laundromats.” Furthermore, the Dry Cleaners industry has experienced long-term decline due to the continued trend toward business-casual clothing that generally does not require dry cleaning. Additionally, with more consumers foregoing restaurants and hotels to save money during the recession, hotels and restaurants required fewer linens cleaned by industry operators.
In 2013, however, industry revenue is expected to turn the corner as modest employment gains during the year drive needs for dry-clean and wash-and-fold laundry services for professional clothing. Over the year, revenue is expected to rise 1.2% to $9.0 billion.
The number of companies operating in the industry decreased at an annualized rate of 1.0% from 2008 to 2013 to an estimated 38,755. Fewer companies remained in the industry primarily because of decreased demand and shrinking profit margins. “Profit margins felt pressure from rising utility costs and increasing hanger prices, which are major expenses for operators,” says Outlaw. The industry has also been challenged by increasing environmental regulations over the use of perchloroethylene (perc), the most commonly used solvent for dry cleaners.
Over the next five years, industry revenue is forecast to rebound considerably; although, growth will be tempered by the continued trend toward business-casual clothing. However, the industry will ultimately benefit from a postrecession bounce and employment gains, which will prompt greater overall demand for professional clothing cleaning. Furthermore, industry operators are expected to increasingly concentrate on the commercial market by targeting hospitals, hotels and restaurants that require pick-up and delivery laundering services.
For more information, visit IBISWorld’s Dry Cleaners in the US industry report page.
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IBISWorld industry Report Key Topics
The Dry Cleaners industry provides dry cleaning and laundering services. Companies may also provide drop-off and pick-up sites for laundries and dry cleaners. In addition, establishments may also offer specialty-cleaning services for garments and textiles such as fur, leather, suede, wedding gowns, draperies and pillows. This industry does not include establishments that offer coin-operated laundering and dry cleaning, nor does it include those offering linen and uniform rentals.
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, +1 (310) 866-5042, [email protected]
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